Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
We are in Texas and have our house on the market. We got a buyer and then when everything looked good we put a contract on a foreclosure home that is owned by Fannie Mae. Three days before closing our buyer has had to back out because she lost her job that was bringing her here. We have about 2 weeks before we have to close on the house that we put a contract on but now have no down payment and can not afford it. I know that we will loose our earnest money ($1,000) but we are in fear that Fannie Mae will sue us. Does this really happen? I do feel that if I go to the bank and tell them that now I need 100% financing and my house is not sold that we won't qualify for the two mortgages. If I don't get a buyer in the next week do I go toward getting the denial letter from the bank? I'm sick about the earnest money but terrified at the thought of being sued. Please advise.... (no, it was not a contingency contract.)
We are in Texas and have our house on the market. We got a buyer and then when everything looked good we put a contract on a foreclosure home that is owned by Fannie Mae. Three days before closing our buyer has had to back out because she lost her job that was bringing her here. We have about 2 weeks before we have to close on the house that we put a contract on but now have no down payment and can not afford it. I know that we will loose our earnest money ($1,000) but we are in fear that Fannie Mae will sue us. Does this really happen? I do feel that if I go to the bank and tell them that now I need 100% financing and my house is not sold that we won't qualify for the two mortgages. If I don't get a buyer in the next week do I go toward getting the denial letter from the bank? I'm sick about the earnest money but terrified at the thought of being sued. Please advise.... (no, it was not a contingency contract.)
Sherri
A) Depends on your state law
B) Depends upon the contract you signed.
My STRONG suggestion is, contact a local attorney for their LEGAL advice
Question: Did you have an RE agent representing you?
Yes we used an agent. She can't say that they absolutely won't, she doesn't know. I have had people say that they have not heard of Fannie Mae doing that but it's just a little nerve racking to think of. I guess no one can say for sure. I feel like my best bet will be if I have to go to the bank (lender) and ask for the 100% financing along with my current mortgage. It would be more than 30% of my gross income so I feel confident that they would deny me. I'm hoping that this will be my way out of getting sued by them.
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,957 posts, read 22,302,067 times
Reputation: 6471
Your contract may have a "liquidated damages" clause. California's Real estate forms do. It basically states that the amount of the deposit is forfeited if the buyer fails to complete the contract.
I'd be surprised if TX doesn't have the same thing, but on the other hand I was surprised that in TX there is a defense for murder that the victim "deserved to die".
Your contract may have a "liquidated damages" clause. California's Real estate forms do. It basically states that the amount of the deposit is forfeited if the buyer fails to complete the contract.
Good point. But, also the reason you gotta look at the particular contract. In AZ, if the buyer fails to close, the seller has options: Sue for specific performance OR use the liquidated damage provision (not both)
No one can tell you what the Bank is going to do except the bank or its agent. Your agent can talk to them, can explain the situation, can discuss the contract with you and ethically I can't give ya any other or better advice.
Hope this helps
Your contract may have a "liquidated damages" clause. California's Real estate forms do. It basically states that the amount of the deposit is forfeited if the buyer fails to complete the contract.
I'd be surprised if TX doesn't have the same thing, but on the other hand I was surprised that in TX there is a defense for murder that the victim "deserved to die".
I think the precise legal wording of the defense plea is "He needed killin'"
You didn't have a clause that said that your new house purchase was dependent upon the selling of your current house? Or that you won't be in breach of contract if you can't be approved? Those are your way out. Good luck!
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
